Systems and methods for communicating with a magnetic reader head

ABSTRACT

A device and method for waveform transmission of transaction card data to a merchant point-of-sale device are provided. The device includes a memory device for storing data, a processor, and a transmitter. The device is programmed to receive transaction card data that mimics data stored within a magnetic stripe associated with a transaction card, convert the transaction card data to a first data file for storage within the memory device, transmit the first data file to the transmitter, and transmit a first waveform from the transmitter to the POS device, wherein the first waveform includes changes in a magnetic field that represent the transaction card data.

BACKGROUND OF THE INVENTION

The field of the invention relates generally to a portable computerdevice configured to transmit transaction card data in a waveform to amerchant point-of-sale (POS) device and, more particularly, to a methodand system for converting magnetic stripe data coupled to a payment cardinto transaction card data that mimics the magnetic stripe data, andtransmitting the transaction card data as a wave signal from thecomputer system to a merchant POS device.

Payment cards, such as credit and debit cards, are used for transactingbusiness and making purchases throughout our society. Traditionalpayment card environments involve a merchant-controlled point ofinteraction (POI). Traditional points of interaction include POSdevices, access through a merchant website, and interaction through amerchant telephone to initiate the authorization request. Collectively,these traditional points of interaction might be referred to as amerchant environment. For all interactions within this environment, anaccount number associated with a cardholder's financial transaction cardis entered into the specific merchant's environment in order to conductthe transaction and/or obtain an authorization.

In the case of the POS devices, the cardholder typically gives thepayment card to a merchant to swipe or key into the merchant POS device,or the cardholder himself swipes his card into the merchant's POS devicefor further processing. Payments for approved transactions are managedwith the issuer or merchant's acquirer based on the specific cardpayment network or closed loop environment.

These payment cards typically have a magnetic stripe for storingcardholder account data. The stripe includes three tracks: track 1,track 2 and track 3. Magnetic stripe cards store data by modifying themagnetism of tiny iron-based magnetic particles on a band of magneticmaterial on the card. The magnetic stripe is read by physical contactand swiping past a magnetic reading head housed within the merchant'sPOS device.

A number of International Organization for Standardization standards,ISO/IEC 7810, ISO/IEC 7811, ISO/IEC 7812, ISO/IEC 7813, ISO 8583, andISO/IEC 4909, now define the physical properties of these payment cards,including size, flexibility, location of the magnetic stripe, magneticcharacteristics, and data formats. They also provide the standards forthe allocation of card number ranges to different card issuinginstitutions. Standards also define the magnetic domain encoding fortracks 1 and 2, respectively, of magnetic stripe cards. Track 3 ofmagnetic stripe cards is used by some organizations such as ATM machinesfor read and write functions, and utilizes unique organization encodingschemes.

Despite advancements in this technology, there remain 21 millionworld-wide merchants having only magnetic stripe card acceptancesystems. Many of these merchants obtained their magnetic stripe cardacceptance system years ago, and are resistant towards replacing theirequipment and undergoing training in the use of newer systems. As aresult, most new financial card equipment sales are merely replacementmodels. Upgrades to new equipment, including merchant systems capable ofreading the RF proximity chip cards, is primarily driven by head officesof franchise or branch retail stores desiring to improve inventory,financial accounting, and similar functions, who may not necessarilyexert influence over individual, independent merchants. Yet anotherbarrier to adopting technology for RF proximity chip card transactionsis that manufacturers of magnetic stripe card acceptance systems maydisqualify any attempt to upgrade their devices through directmodification of electrical connections, thereby discouraging upgrades bythird party equipment suppliers.

A problem thus exists whereby the technology for more secureconsumer/user financial data storage and transactions is available, butis compromised by a reluctance of merchants to replace their existingPOS card acceptance systems. Therefore, it can be seen that there is aneed in the art for devices and methods which enable older legacy POScard acceptance systems to be non-invasively adapted to interact withvarious newer technology devices, such as smart phones, to meet thedesires of the transaction industry, and the desires of the merchants.

Accordingly, systems and methods are needed that enable a cardholder tomake a purchase from a merchant by converting magnetic stripe card datafrom a payment card into a waveform, storing the waveform within aportable computing device such as a smart phone, and transmitting a wavesignal based on the waveform from the computing device to apoint-of-sale (POS) device.

BRIEF DESCRIPTION OF THE INVENTION

In one embodiment, a computing device for waveform transmission oftransaction card data to a merchant point-of-sale device is provided.The device includes a memory device for storing data, a processor, and atransmitter. The device is programmed to receive transaction card datathat mimics data stored within a magnetic stripe associated with atransaction card, convert the transaction card data to a first data filefor storage within the memory device, convert the transaction card datato a first data file for storage within the memory device, transmit thefirst data file to the transmitter, and transmit a first waveform fromthe transmitter to the POS device, wherein the first waveform includeschanges in a magnetic field that represent the transaction card data.

In another embodiment, a computer-based method for transmittingtransaction card data to a merchant POS device by a portable computerdevice is provided. The portable computer device includes a memorydevice, a processor, and a transmitter. The method includes receivingtransaction card data that mimics magnetic stripe data associated with atransaction card, converting the transaction card data to a first datafile for storage within the memory device, the conversion beingperformed by the processor, communicating the first data file to thetransmitter, and using the transmitter to transmit a first waveform tothe POS device, wherein the first waveform comprises changes in amagnetic field that represent the transaction card data.

In yet another embodiment, one or more non-transitory computer-readablestorage media having computer-executable instructions embodied thereonfor causing the transmission of transaction card data from a portablecomputing device to a merchant POS device is provided. The portablecomputing device includes a memory device, a processor, and atransmitter. When executed by a processor, the instructions cause theprocessor to receive transaction card data that mimics data storedwithin a magnetic stripe associated with a transaction card, convert thetransaction card data to a first data file for storage within the memorydevice, transmit the first data file to the transmitter, and transmit afirst waveform from the transmitter to the POS device, wherein the firstwaveform includes changes in a magnetic field that represent thetransaction card data.

BRIEF DESCRIPTION OF THE DRAWINGS

FIGS. 1-8 show exemplary embodiments of the device and method describedherein.

FIG. 1 is a schematic diagram illustrating an exemplary multi-partypayment card industry system for enabling ordinary payment-by-cardtransactions in which merchants and card issuers do not necessarily havea one-to-one relationship.

FIG. 2 is a simplified block diagram of an exemplary payment processingsystem including a cardholder computing system in accordance with oneexample embodiment of the present invention.

FIG. 3 is an expanded block diagram of an exemplary embodiment of aserver architecture of the payment processing system including theplurality of computer devices in accordance with one example embodimentof the present invention.

FIG. 4 illustrates an exemplary configuration of a client system shownin FIGS. 2 and 3.

FIG. 5 illustrates an exemplary configuration of a server system shownin FIGS. 2 and 3.

FIG. 6 illustrates a known financial transaction card for use in thecardholder computing system shown in FIGS. 2 and 3.

FIG. 7 illustrates an exemplary configuration of the cardholdercomputing system and the merchant POS device shown in FIGS. 2 and 3 inaccordance with an exemplary embodiment of the present invention.

FIG. 8 is a data flow diagram showing the transmission of data betweenthe cardholder computing system, the POS device, and the paymentprocessing system as shown in FIGS. 2 and 3 in accordance with anexemplary embodiment of the present invention.

DETAILED DESCRIPTION OF THE INVENTION

Embodiments of the present invention relate generally to contactlesstransmission of transaction card data from a cardholder computing deviceto a point-of-sale (POS) device at a merchant. The transaction card datais converted data that mimics the data stored within a magnetic stripethat is attached to a transaction card (also referred to as “magstripedata” or “magnetic stripe data”). The methods and systems describedherein include a cardholder computing system that includes a cardholdercomputing device and a transmitter. The cardholder computing deviceincludes a processor and a memory device. The POS device includes amagnetic reader head, a processor, and a transceiver for transmittingand receiving an authorization message to an issuer bank associated withissuing the transaction card to the cardholder.

The memory device in communication with the cardholder computing deviceis used to store data including transaction card data. The transactioncard data is converted data that mimics the magstripe data stored withinthe magnetic stripe coupled to a face of the transaction card. Thus, themagstripe data stored within the magstripe (e.g., tracks 1, 2 and 3) ona transaction card is converted into a first data file by the computingdevice processor and is stored within the memory device of thecardholder computing device. In the example embodiment, the first datafile is a binary data file of transaction card data. The cardholdercomputing device includes computer-readable instructions stored withinthe memory device that, upon execution by the processor, converts themagstripe data into a binary data file of transaction card data. Thecomputing device is configured to further process the first data file,and generate a first waveform (e.g., an audio waveform) using at leastone of amplitude and frequency changes to represent polarity shiftsincluded within the magstripe data.

The transmitter is coupled to the cardholder computing device through anaudio jack or a proprietary interface such as a USB connector or asmartphone dock connector. In the example embodiment, the transmittercontains an electromagnet that is configured to receive the firstwaveform generated by the computing device, and output a second waveformin the form of a magnetic field that is receivable by the magneticreader head included within the POS device. The magnetic reader headincluded within the POS device is able to receive the second waveformfrom the cardholder computing device, wherein the second waveformrepresents the transaction card data. The POS device processor processesthe received second waveform and converts it into a second data filethat represents the transaction card data. The POS device is furtherconfigured to process the received transaction card data, and generatean authorization request message that is transmitted to the issuer bankvia an interchange network.

Thus, the cardholder computing system is configured to transmittransaction card data, which is converted from the magstripe data storedon a transaction card and mimics the magstripe data, to a POS devicewithout the transaction card being placed in contact with the POSdevice. Rather, the transmitter coupled to the cardholder computingdevice is configured to, wirelessly and without contacting the POSdevice, transmit a second waveform representing the transaction carddata to the magnetic reader head of the POS device. The POS deviceprocessor converts the second waveform into a second data filerepresenting the transaction card data, and then into an authorizationrequest message that is transmitted by the transceiver to the issuerbank.

As used herein, the terms “transaction card,” “financial transactioncard,” and “payment card” refer to any suitable transaction card, suchas a credit card, a debit card, a prepaid card, a charge card, amembership card, a promotional card, a frequent flyer card, anidentification card, a prepaid card, a gift card, and/or any otherdevice that may hold payment account information, such as mobile phones,smartphones, personal digital assistants (PDAs), key fobs, and/orcomputers. Each type of transactions card can be used as a method ofpayment for performing a transaction. In addition, consumer card accountbehavior can include but is not limited to purchases, managementactivities (e.g. balance checking), bill payments, achievement oftargets (meeting account balance goals, paying bills on time), and/orproduct registrations (e.g. mobile application downloads).

In one embodiment, a computer program is provided, and the program isembodied on a computer readable medium. In an exemplary embodiment, thesystem is executed on a single computer system, without requiring aconnection to a sever computer. In a further exemplary embodiment, thesystem is being run in a Windows® environment (Windows is a registeredtrademark of Microsoft Corporation, Redmond, Wash.). In yet anotherembodiment, the system is run on a mainframe environment and a UNIX®server environment (UNIX is a registered trademark of X/Open CompanyLimited located in Reading, Berkshire, United Kingdom). The system isflexible and designed to run in various different environments withoutcompromising any major functionality. In some embodiments, the systemincludes multiple components distributed among a plurality of computingdevices. One or more components may be in the form ofcomputer-executable instructions embodied in a computer-readable medium.The systems and processes are not limited to the specific embodimentsdescribed herein. In addition, components of each system and eachprocess can be practiced independent and separate from other componentsand processes described herein. Each component and process can also beused in combination with other assembly packages and processes.

The following detailed description illustrates embodiments of theinvention by way of example and not by way of limitation. It iscontemplated that the invention has general application to processingfinancial transaction data by a third party in a variety ofapplications.

As used herein, an element or step recited in the singular and proceededwith the word “a” or “an” should be understood as not excluding pluralelements or steps, unless such exclusion is explicitly recited.Furthermore, references to “example embodiment” or “one embodiment” ofthe present invention are not intended to be interpreted as excludingthe existence of additional embodiments that also incorporate therecited features.

FIG. 1 is a schematic diagram illustrating an exemplary multi-partytransaction card industry system 20 for enabling ordinarypayment-by-card transactions in which merchants 24 and card issuers 30do not need to have a one-to-one special relationship. Embodimentsdescribed herein may relate to a transaction card system, such as acredit card payment system using the MasterCard® interchange network.The MasterCard® interchange network is a set of proprietarycommunications standards promulgated by MasterCard InternationalIncorporated® for the exchange of financial transaction data and thesettlement of funds between financial institutions that are members ofMasterCard International Incorporated®. (MasterCard is a registeredtrademark of MasterCard International Incorporated located in Purchase,New York).

In a typical transaction card system, a financial institution called the“issuer” issues a transaction card, such as a credit card, to a consumeror cardholder 22, who uses the transaction card to tender payment for apurchase from a merchant 24. To accept payment with the transactioncard, merchant 24 must normally establish an account with a financialinstitution that is part of the financial payment system. This financialinstitution is usually called the “merchant bank,” the “acquiring bank,”or the “acquirer.” When cardholder 22 tenders payment for a purchasewith a transaction card, merchant 24 requests authorization from amerchant bank 26 for the amount of the purchase. The request may beperformed over the telephone, but is usually performed through the useof a point-of-sale device, which reads cardholder's 22 accountinformation from a magnetic stripe, a chip, or embossed characters onthe transaction card and communicates electronically with thetransaction processing computers of merchant bank 26. Alternatively,merchant bank 26 may authorize a third party to perform transactionprocessing on its behalf. In this case, the point-of-sale device will beconfigured to communicate with the third party. Such a third party isusually called a “merchant processor,” an “acquiring processor,” or a“third party processor.”

Using an interchange network 28, computers of merchant bank 26 ormerchant processor will communicate with computers of an issuer bank 30to determine whether cardholder's 22 account 32 is in good standing andwhether the purchase is covered by cardholder's 22 available creditline. Based on these determinations, the request for authorization willbe declined or accepted. If the request is accepted, an authorizationcode is issued to merchant 24.

When a request for authorization is accepted, the available credit lineof cardholder's 22 account 32 is decreased. Normally, a charge for apayment card transaction is not posted immediately to cardholder's 22account 32 because bankcard associations, such as MasterCardInternational Incorporated®, have promulgated rules that do not allowmerchant 24 to charge, or “capture,” a transaction until goods areshipped or services are delivered. However, with respect to at leastsome debit card transactions, a charge may be posted at the time of thetransaction. When merchant 24 ships or delivers the goods or services,merchant 24 captures the transaction by, for example, appropriate dataentry procedures on the point-of-sale device. This may include bundlingof approved transactions daily for standard retail purchases. Ifcardholder 22 cancels a transaction before it is captured, a “void” isgenerated. If cardholder 22 returns goods after the transaction has beencaptured, a “credit” is generated. Interchange network 28 and/or issuerbank 30 stores the transaction card information, such as a type ofmerchant, amount of purchase, date of purchase, in a database 120 (shownin FIG. 2).

After a purchase has been made, a clearing process occurs to transferadditional transaction data related to the purchase among the parties tothe transaction, such as merchant bank 26, interchange network 28, andissuer bank 30. More specifically, during and/or after the clearingprocess, additional data, such as a time of purchase, a merchant name, atype of merchant, purchase information, cardholder account information,a type of transaction, itinerary information, information regarding thepurchased item and/or service, and/or other suitable information, isassociated with a transaction and transmitted between parties to thetransaction as transaction data, and may be stored by any of the partiesto the transaction.

After a transaction is authorized and cleared, the transaction issettled among merchant 24, merchant bank 26, and issuer bank 30.Settlement refers to the transfer of financial data or funds amongmerchant's 24 account, merchant bank 26, and issuer bank 30 related tothe transaction. Usually, transactions are captured and accumulated intoa “batch,” which is settled as a group. More specifically, a transactionis typically settled between issuer bank 30 and interchange network 28,and then between interchange network 28 and merchant bank 26, and thenbetween merchant bank 26 and merchant 24.

FIG. 2 is a simplified block diagram of an exemplary payment processingsystem 100 including a plurality of computer devices in accordance withone embodiment of the present invention. In the example embodiment,system 100 may be used for performing payment-by-card transactionsreceived as part of processing the financial transaction.

More specifically, in the example embodiment, system 100 includes aserver system 112, and a plurality of client sub-systems, also referredto as client systems 114, connected to server system 112. In oneembodiment, client systems 114 are computers including a web browser,such that server system 112 is accessible to client systems 114 usingthe Internet. Client systems 114 are interconnected to the Internetthrough many interfaces including a network, such as a local areanetwork (LAN) or a wide area network (WAN), dial-in-connections, cablemodems, and special high-speed Integrated Services Digital Network(ISDN) lines. Client systems 114 could be any device capable ofinterconnecting to the Internet including a web-based phone, PDA, orother web-based connectable equipment.

System 100 also includes point-of-sale (POS) device 118, which may beconnected to client systems 114 and may be connected to server system112. POS device 118 is interconnected to the Internet through manyinterfaces including a network, such as a local area network (LAN) or awide area network (WAN), dial-in-connections, cable modems, wirelessmodems, and special high-speed ISDN lines. POS device 118 can be anydevice capable of interconnecting to the Internet and including an inputdevice capable of reading information from a consumer's financialtransaction card.

A database server 116 is connected to database 120, which containsinformation on a variety of matters, as described below in greaterdetail. In one embodiment, centralized database 120 is stored on serversystem 112 and can be accessed by potential users at one of clientsystems 114 by logging onto server system 112 through one of clientsystems 114. In an alternative embodiment, database 120 is storedremotely from server system 112 and may be non-centralized.

Database 120 may include a single database having separated sections orpartitions or may include multiple databases, each being separate fromeach other. Database 120 may store transaction data generated as part ofsales activities conducted over the processing network including datarelating to merchants, account holders or customers, issuers, acquirers,and/or purchases made. Database 120 may also store account dataincluding at least one of a cardholder name, a cardholder address, anaccount number, and other account identifier. Database 120 may alsostore merchant data including a merchant identifier that identifies eachmerchant registered to use the network, and instructions for settlingtransactions including merchant bank account information. Database 120may also store purchase data associated with items being purchased by acardholder from a merchant, and authorization request data.

In the exemplary embodiment, one of client systems 114 may be associatedwith acquirer bank 26 (shown in FIG. 1) while another one of clientsystems 114 may be associated with issuer bank 30 (shown in FIG. 1). POSdevice 118 may be associated with a participating merchant 24 (shown inFIG. 1) or may be a computer system and/or mobile system used by acardholder making an on-line purchase or payment. Server system 112 maybe associated with interchange network 28. In the exemplary embodiment,server system 112 is associated with a network interchange, such asinterchange network 28, and may be referred to as an interchangecomputer system. Server system 112 may be used for processingtransaction data. In addition, client systems 114 and/or POS device 118may include a computer system associated with at least one of an onlinebank, a bill payment outsourcer, an acquirer bank, an acquirerprocessor, an issuer bank associated with a transaction card, an issuerprocessor, a remote payment system, and/or a biller.

System 100 also includes a cardholder computing system 121 incommunication with POS device 118. In the exemplary embodiment,cardholder computing system 121 includes a processor, a memory device,and a transmitter for transmitting transaction card data to POS device118. For example, cardholder computing system 121 may include mobilephones, smartphones, personal digital assistants (PDAs), iPhone® (iPhoneis a registered trademark of Apple, Incorporated located in Cupertino,Calif.), Android® (Android is a registered trademark of GoogleIncorporated, located in Mountain View, Calif.), and/or any devicecapable of executing stored computer-readable instructions. Cardholdercomputing system 121 is also wirelessly connected to server 112 orclient systems 114. Accordingly, each party involved in processingtransaction data are associated with a computer system shown in system100 such that the parties can communicate with one another as describedherein.

Using the interchange network, the computers of the merchant bank or themerchant processor will communicate with the computers of the issuerbank to determine whether the consumer's account is in good standing andwhether the purchase is covered by the consumer's available credit line.Based on these determinations, the request for authorization will bedeclined or accepted. If the request is accepted, an authorization codeis issued to the merchant.

When a request for authorization is accepted, the available credit lineof consumer's account is decreased. Normally, a charge is not postedimmediately to a consumer's account because bankcard associations, suchas MasterCard International Incorporated®, have promulgated rules thatdo not allow a merchant to charge, or “capture,” a transaction untilgoods are shipped or services are delivered. When a merchant ships ordelivers the goods or services, the merchant captures the transactionby, for example, appropriate data entry procedures on the point-of-saledevice. If a consumer cancels a transaction before it is captured, a“void” is generated. If a consumer returns goods after the transactionhas been captured, a “credit” is generated.

For debit card transactions, when a request for a PIN authorization isapproved by the issuer, the consumer's account is decreased. Normally, acharge is posted immediately to a consumer's account. The bankcardassociation then transmits the approval to the acquiring processor fordistribution of goods/services, or information or cash in the case of anATM.

After a transaction is captured, the transaction is settled between themerchant, the merchant bank, and the issuer. Settlement refers to thetransfer of financial data or funds between the merchant's account, themerchant bank, and the issuer related to the transaction. Usually,transactions are captured and accumulated into a “batch,” which issettled as a group.

The financial transaction cards or payment cards discussed herein mayinclude credit cards, debit cards, a charge card, a membership card, apromotional card, prepaid cards, and gift cards. These cards can all beused as a method of payment for performing a transaction. As describedherein, the term “financial transaction card” or “payment card” includescards such as credit cards, debit cards, and prepaid cards, but alsoincludes any other devices that may hold payment account information,such as mobile phones, personal digital assistants (PDAs), key fobs, orother devices, etc.

FIG. 3 is an expanded block diagram of an exemplary embodiment of aserver architecture of a payment processing system 122 including othercomputer devices in accordance with one embodiment of the presentinvention. Components in system 122, identical to components of system100 (shown in FIG. 2), are identified in FIG. 3 using the same referencenumerals as used in FIG. 2. System 122 includes server system 112,client systems 114, and POS device 118, and cardholder computing system121. Server system 112 further includes database server 116, anapplication server 124, a web server 126, a fax server 128, a directoryserver 130, and a mail server 132. A storage device 134 is coupled todatabase server 116 and directory server 130. Servers 116, 124, 126,128, 130, and 132 are coupled in a local area network (LAN) 136. Inaddition, a system administrator's workstation 138, a user workstation140, and a supervisor's workstation 142 are coupled to LAN 136.Alternatively, workstations 138, 140, and 142 are coupled to LAN 136using an Internet link or are connected through an Intranet.

Each workstation 138, 140, and 142 is a personal computer having a webbrowser. Although the functions performed at the workstations typicallyare illustrated as being performed at respective workstations 138, 140,and 142, such functions can be performed at one of many personalcomputers coupled to LAN 136. Workstations 138, 140, and 142 areillustrated as being associated with separate functions only tofacilitate an understanding of the different types of functions that canbe performed by individuals having access to LAN 136.

Server system 112 is configured to be communicatively coupled to variousindividuals, including employees 144 and to third parties, e.g., accountholders, customers, auditors, developers, consumers, merchants,acquirers, issuers, etc., 146 using an ISP Internet connection 148. Thecommunication in the exemplary embodiment is illustrated as beingperformed using the Internet, however, any other wide area network (WAN)type communication can be utilized in other embodiments, i.e., thesystems and processes are not limited to being practiced using theInternet. In addition, and rather than WAN 150, local area network 136could be used in place of WAN 150.

In the exemplary embodiment, any authorized individual having aworkstation 154 can access system 122. At least one of the clientsystems includes a manager workstation 156 located at a remote location.Workstations 154 and 156 are personal computers having a web browser.Also, workstations 154 and 156 are configured to communicate with serversystem 112. Furthermore, fax server 128 communicates with remotelylocated client systems, including a client system 156 using a telephonelink. Fax server 128 is configured to communicate with other clientsystems 138, 140, and 142 as well.

In the example embodiment, cardholder computing system 121 is inwireless communication with POS device 118 or, alternatively, may be inwireless communication with server system 112 or client systems 114 andother workstations through a network connection.

FIG. 4 illustrates an exemplary configuration of a user system 202operated by a user 201, such as cardholder 22 (shown in FIG. 1). Usersystem 202 may include, but is not limited to, cardholder computingsystem 121, client systems 114, 138, 140, and 142, POS device 118,workstation 154, and manager workstation 156. In the exemplaryembodiment, user system 202 includes a processor 205 for executinginstructions. In some embodiments, executable instructions are stored ina memory area 210. Processor 205 may include one or more processingunits, for example, a multi-core configuration. Memory area 210 is anydevice allowing information such as executable instructions and/orwritten works to be stored and retrieved. Memory area 210 may includeone or more computer readable media.

User system 202 also includes at least one media output component 215for presenting information to user 201. Media output component 215 isany component capable of conveying information to user 201. In someembodiments, media output component 215 includes an output adapter suchas a video adapter and/or an audio adapter. An output adapter isoperatively coupled to processor 205 and operatively couplable to anoutput device such as a display device, a liquid crystal display (LCD),organic light emitting diode (OLED) display, or “electronic ink”display, or an audio output device, a speaker or headphones.

In some embodiments, user system 202 includes an input device 220 forreceiving input from user 201. Input device 220 may include, forexample, a keyboard, a pointing device, a mouse, a stylus, a touchsensitive panel, a touch pad, a touch screen, a gyroscope, anaccelerometer, a position detector, or an audio input device. A singlecomponent such as a touch screen may function as both an output deviceof media output component 215 and input device 220. User system 202 mayalso include a communication interface 225, which is communicativelycouplable to a remote device such as server system 112. Communicationinterface 225 may include, for example, a wired or wireless networkadapter or a wireless data transceiver for use with a mobile phonenetwork, Global System for Mobile communications (GSM), 3G, or othermobile data network or Worldwide Interoperability for Microwave Access(WIMAX).

Stored in memory area 210 are, for example, computer readableinstructions for providing a user interface to user 201 via media outputcomponent 215 and, optionally, receiving and processing input from inputdevice 220. A user interface may include, among other possibilities, aweb browser and client application. Web browsers enable users, such asuser 201, to display and interact with media and other informationtypically embedded on a web page or a website from server system 112. Aclient application allows user 201 to interact with a server applicationfrom server system 112.

FIG. 5 illustrates an exemplary configuration of a server system 301such as server system 112 (shown in FIGS. 2 and 3). Server system 301may include, but is not limited to, database server 116, applicationserver 124, web server 126, fax server 128, directory server 130, andmail server 132.

Server system 301 includes a processor 305 for executing instructions.Instructions may be stored in a memory area 310, for example. Processor305 may include one or more processing units (e.g., in a multi-coreconfiguration) for executing instructions. The instructions may beexecuted within a variety of different operating systems on the serversystem 301, such as UNIX, LINUX, Microsoft Windows®, etc. It should alsobe appreciated that upon initiation of a computer-based method, variousinstructions may be executed during initialization. Some operations maybe required in order to perform one or more processes described herein,while other operations may be more general and/or specific to aparticular programming language (e.g., C, C#, C++, Java, or othersuitable programming languages, etc).

Processor 305 is operatively coupled to a communication interface 315such that server system 301 is capable of communicating with a remotedevice such as a user system or another server system 301. For example,communication interface 315 may receive requests from user system 114via the Internet, as illustrated in FIGS. 2 and 3.

Processor 305 may also be operatively coupled to a storage device 134.Storage device 134 is any computer-operated hardware suitable forstoring and/or retrieving data. In some embodiments, storage device 134is integrated in server system 301. For example, server system 301 mayinclude one or more hard disk drives as storage device 134. In otherembodiments, storage device 134 is external to server system 301 and maybe accessed by a plurality of server systems 301. For example, storagedevice 134 may include multiple storage units such as hard disks orsolid state disks in a redundant array of inexpensive disks (RAID)configuration. Storage device 134 may include a storage area network(SAN) and/or a network attached storage (NAS) system.

In some embodiments, processor 305 is operatively coupled to storagedevice 134 via a storage interface 320. Storage interface 320 is anycomponent capable of providing processor 305 with access to storagedevice 134. Storage interface 320 may include, for example, an AdvancedTechnology Attachment (ATA) adapter, a Serial ATA (SATA) adapter, aSmall Computer System Interface (SCSI) adapter, a RAID controller, a SANadapter, a network adapter, and/or any component providing processor 305with access to storage device 134.

Memory area 310 may include, but are not limited to, random accessmemory (RAM) such as dynamic RAM (DRAM) or static RAM (SRAM), read-onlymemory (ROM), erasable programmable read-only memory (EPROM),electrically erasable programmable read-only memory (EEPROM), andnon-volatile RAM (NVRAM). The above memory types are exemplary only, andare thus not limiting as to the types of memory usable for storage of acomputer program.

FIG. 6 illustrates a known financial transaction card 400 for use inpayment processing system 122 (shown in FIG. 3). Financial transactioncard 400 may include credit cards, debit cards, a charge card, amembership card, a promotional card, prepaid cards, and gift cards. Card400 can be used as a method of payment for performing a transaction.

Financial transaction card 400 includes a magnetic stripe 402 forstoring cardholder account data. The magnetic stripe 402 stores data bymodifying the magnetism of tiny iron-based magnetic particles on a bandof magnetic material on the card. The arrangement (N-S or S-N) providesan alternating magnetic field that produces a current when a user swipestransaction card 400 at a POS device. Magnetic stripe 402 is read byphysical contact and swiping past a magnetic reading head housed withinthe merchant's POS device. Magnetic stripe 402 typically includes threetracks: track 1, track 2 and track 3. Track 2 is the most commonly usedtrack and may contain cardholder account data including the accountnumber, expiration date, and service code. Track 1 typically containsthe same data as track 2, but further includes the cardholder's name andaddress. Track 3 is used by some organizations to implement ATM machinesread and write functions, and uses unique organization encoding schemes.

FIG. 7 illustrates an exemplary configuration of the cardholdercomputing system 121 and the merchant POS device 118 as shown in FIGS. 2and 3 in accordance with an exemplary embodiment of the presentinvention. Cardholder computing system 121 includes a cardholdercomputing device 502 coupled to a transmitter 504 through an audio jack506. In an alternative embodiment, cardholder computing device 502 maycoupled to transmitter 504 through a proprietary interface such as a USBconnector or an iPhone® dock connector. Cardholder computing device 502includes a processor 508 and a memory device 510 for storing a firstdata file 512. Cardholder computing device 502 may include, for example,mobile phones, smartphones, personal digital assistants (PDAs), and/orany device capable of executing stored computer-readable instructions.Processor 508 executes instructions that are stored on memory device510. Memory device 510 may include one or more computer readable media.In the example embodiment, transmitter 504 includes an electromagnet 514for generating a magnetic field. Transmitter 504 controls electromagnet514 to generate a changing magnetic field for connecting with POS device118. In another embodiment, transmitter 504 includes an amplifier fortransmitting an audio wave to POS device 118. In the case where thetransmitter 504 has an amplifier, POS device 118 would include amicrophone for receiving the audio wave.

POS device 118 includes a magnetic reader head 520, a POS processor 522for processing a second data file 524, and a transceiver 526.

Processor 508 is configured to receive transaction card track data. Thetrack data is stored in memory device 510 as first data file 512. In theexemplary embodiment, first data file 512 is a binary coded decimal(BCD) data file. Processor 508 executes instructions stored on memorydevice 510 to convert first data file 512 into a first audio waveformusing amplitude and frequency shifts. Processor 508 then transmits thefirst waveform to transmitter 504, which with electromagnet 514 convertsthe first waveform into a second waveform and outputs the secondwaveform in the form of a magnetic field. The second waveform mimics thepolarity changes of first data file 512. When transmitter 504 is placedwithin close proximity to magnetic reader head 520 of POS device 118,the magnetic field communicates with the data recovery circuit ofmagnetic reader head 520. The current created by electromagnet 514generates a strobe pattern, which activates magnetic reader head 520 toreceive incoming data. Magnetic reader head 520 receives the secondwaveform as though a transaction card was actually swiped in POS device118. POS device processor 522 then receives and processes the secondwaveform. POS device processor 522 converts the second waveform intosecond data file 524, which represents the transaction card data. POSdevice processor 522 then generates an authorization request messagethat is transmitted by transceiver 526 to the issuer bank via aninterchange network.

There are several ways for the transaction card track data to be enteredinto cardholder computing device 502. In one embodiment, a magneticstripe reader 530 is integrated into the housing of transmitter 504. Auser swipes transaction card 400 and processor 508 receives thetransaction card track data. Processor 508 then stores first data file512 in memory device 510 and converts it into a waveform fortransmission. In an alternate embodiment, the creator or processor oftransaction card 400, for example an issuing bank or an interchangenetwork, sends to the user first data file 512 containing the user'sdata to be stored in memory device 510. First data file 512 may be sentto cardholder computing device 502 by means including, but not limitedto email, text message, the Internet, or a removable storage device. Inanother alternate embodiment, the user manually inputs the transactioncard data into cardholder computing device 502 using means including,but not limited to a touch screen, touch pad, keyboard, or mouse. Memorydevice 510 includes means to cause processor 508 to interpret the inputdata and convert it to a first wave file.

FIG. 8 is a flow diagram 600 showing the transmission of data betweenthe cardholder computing system 121, the POS device 118, and the paymentprocessing system 100, 122 as shown in FIGS. 2, 3, and 7 in accordancewith an exemplary embodiment of the present invention. Cardholdercomputing device 502 (shown in FIG. 7) receives 602 transaction carddata. The transaction card data mimics magstripe data stored on atransaction card issued to a cardholder by an issuing bank. Processor508 (shown in FIG. 7) converts 604 transaction card data to first datafile 512 (shown in FIG. 7) and stores it in memory device 510 (shown inFIG. 7). Processor 508 converts 606 first data file 512 into a firstwaveform and sends the first waveform through audio jack 506 (shown inFIG. 7) to transmitter 504 (shown in FIG. 7). Transmitter 504 convertsthe first waveform to a second waveform and outputs 608 the secondwaveform by electromagnet 514 (shown in FIG. 7) as a magnetic field. Themagnetic field mimics the magstripe data stored on the transaction card.Magnetic reader head 520 (shown in FIG. 7) of POS device 118 (shown inFIGS. 2, 3, and 7) receives 610 the second waveform. POS deviceprocessor 522 (shown in FIG. 7) converts 612 the second waveform tosecond data file 524 (shown in FIG. 7), which represents the transactioncard data. Transceiver 526 (shown in FIG. 7) transmits an authorizationmessage to the issuer bank.

The above-described embodiments of methods and systems for contactlesstransmission of transaction card data by a consumer to a merchant's POSdevice without modification to the POS device. As a result, the methodsand systems described herein facilitate contactless transmission oftransaction card data to pre-existing POS devices.

The term processor, as used herein, refers to central processing units,microprocessors, microcontrollers, reduced instruction set circuits(RISC), application specific integrated circuits (ASIC), logic circuits,and any other circuit or processor capable of executing the functionsdescribed herein.

As used herein, the terms “software” and “firmware” are interchangeable,and include any computer program stored in memory for execution by aprocessor, including RAM memory, ROM memory, EPROM memory, EEPROMmemory, and non-volatile RAM (NVRAIVI) memory. The above memory typesare exemplary only, and are thus not limiting as to the types of memoryusable for storage of a computer program.

As will be appreciated based on the foregoing specification, theabove-described embodiments of the disclosure may be implemented usingcomputer programming or engineering techniques including computersoftware, firmware, hardware or any combination or subset thereof,wherein the technical effect is receiving transaction card data,converting the data into a first data file by a processor, convertingthe first data file to a first waveform by the processor, converting thefirst waveform into a second waveform for transmission by a transmitter,receiving the second waveform by a POS device, converting the secondwaveform into a second data file, and generating an authorizationmessage to transmit to an issuer bank. Any such resulting program,having computer-readable code means, may be embodied or provided withinone or more computer-readable media, thereby making a computer programproduct, i.e., an article of manufacture, according to the discussedembodiments of the disclosure. The computer-readable media may be, forexample, but is not limited to, a fixed (hard) drive, diskette, opticaldisk, magnetic tape, semiconductor memory such as read-only memory(ROM), and/or any transmitting/receiving medium such as the Internet orother communication network or link. The article of manufacturecontaining the computer code may be made and/or used by executing thecode directly from one medium, by copying the code from one medium toanother medium, or by transmitting the code over a network.

This written description uses examples to disclose the invention,including the best mode, and also to enable any person skilled in theart to practice the invention, including making and using any devices orsystems and performing any incorporated methods. The patentable scope ofthe invention is defined by the claims, and may include other examplesthat occur to those skilled in the art. Such other examples are intendedto be within the scope of the claims if they have structural elementsthat do not differ from the literal language of the claims, or if theyinclude equivalent structural elements with insubstantial differencesfrom the literal languages of the claims.

1-22. (canceled)
 23. A portable device for communicating with a merchantpoint-of-sale (POS) device, the POS device including a magnetic readerhead proximate a transaction card swipe path, said portable devicecomprising a memory and a transmitter, said portable device configuredto: receive, in said memory, a first data file containing datacorresponding to each standard field in at least one of an ISO/IEC 7813Track 1-compliant record and an ISO/IEC 7813 Track 2-compliant record;and transmit, from said transmitter, a changing magnetic field ofsufficient strength to be received by the magnetic reader head of thePOS device while said portable device is outside of the transaction cardswipe path, wherein the changing magnetic field has a waveformcorresponding to polarity changes in the first data file.
 24. A portabledevice in accordance with claim 23, wherein said transmitter comprisesan electromagnet.
 25. A portable device in accordance with claim 23,wherein the data contained in the first data file is associated with apayment account.
 26. A portable device in accordance with claim 23,wherein the first data file is a binary data file.
 27. A portable devicein accordance with claim 23, wherein said portable device is furtherconfigured to receive the first data file through at least one of manualinput, email, text message, Internet, and a removable storage device.28. A portable device in accordance with claim 23, wherein said portabledevice is further configured to receive the first data file from afinancial institution.
 29. A portable device in accordance with claim23, wherein the polarity changes emulate a swiping of a magnetic stripethrough the transaction card swipe path of the POS device, the magneticstripe having encoded thereon the data contained in the first data file.30. A method for communicating from a portable device to a merchantpoint-of-sale (POS) device, the POS device including a magnetic readerhead proximate a transaction card swipe path, said method comprising:receiving, in a memory of the portable device, a first data filecontaining data corresponding to each standard field in at least one ofan ISO/IEC 7813 Track 1-compliant record and an ISO/IEC 7813 Track2-compliant record; and transmitting, from a transmitter of the portabledevice while the portable device is outside of the transaction cardswipe path, a changing magnetic field to the magnetic reader head of thePOS device, wherein the changing magnetic field has a waveformcorresponding to polarity changes in the first data file.
 31. A methodin accordance with claim 30, wherein transmitting from the transmittercomprises transmitting using an electromagnet.
 32. A method inaccordance with claim 30, further comprising associating the first datafile with a payment account.
 33. A method in accordance with claim 30,wherein receiving the first data file comprises receiving a binary datafile.
 34. A method in accordance with claim 30, wherein receiving thefirst data file comprises receiving the first data file through at leastone of manual input, email, text message, Internet, and a removablestorage device.
 35. A method in accordance with claim 30, whereinreceiving the first data file comprises receiving the first data filefrom a financial institution.
 36. A method in accordance with claim 30,wherein transmitting the changing magnetic field comprises emulating aswiping of a magnetic stripe through the transaction card swipe path ofthe POS device, the magnetic stripe having encoded thereon the datacontained in the first data file.
 37. A non-transitory computer-readablestorage media having computer-executable instructions embodied thereonfor causing communication from a portable device to a merchantpoint-of-sale (POS) device, the POS device including a magnetic readerhead proximate a transaction card swipe path, wherein when executed by aprocessor of the portable device, the computer-executable instructionscause the portable device to: receive, in a memory of the portabledevice, a first data file containing data corresponding to each standardfield in at least one of an ISO/IEC 7813 Track 1-compliant record and anISO/IEC 7813 Track 2-compliant record; and transmit, from a transmitterof the portable device, a changing magnetic field of sufficient strengthto be received by the magnetic reader head of the POS device while theportable device is outside of the transaction card swipe path, whereinthe changing magnetic field has a waveform corresponding to polaritychanges in the first data file.
 38. The non-transitory computer-readablestorage media in accordance with claim 37, wherein thecomputer-executable instructions further cause the portable device totransmit the changing magnetic field from the transmitter that includesan electromagnet.
 39. The non-transitory computer-readable storage mediain accordance with claim 37, wherein the computer-executableinstructions further cause the portable device to associate the firstdata file with a payment account.
 40. The non-transitorycomputer-readable storage media in accordance with claim 37, wherein thecomputer-executable instructions further cause the portable device toreceive the first data file as a binary data file.
 41. Thenon-transitory computer-readable storage media in accordance with claim37, wherein the computer-executable instructions further cause theportable device to receive the first data file from a financialinstitution.
 42. The non-transitory computer-readable storage media inaccordance with claim 37, wherein the computer-executable instructionsfurther cause the portable device to transmit the changing magneticfield such that the changing magnetic field emulates a swiping of amagnetic stripe through the transaction card swipe path of the POSdevice, the magnetic stripe having encoded thereon the data contained inthe first data file.